| News Announcement |
Impact Analysis |
| Foreign investors may be eyeing the Rs.11 trillion NPA pile in India |
- According to Deloitte, foreign investors see big potential in acquiring these bad loans at a steep discount from banks
- It hits two birds with one stone. It offers high risk investors a new assets class and also lightens bank balance sheets
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| RBI puts a freeze on all inflows and outflows of PMC Bank of Mumbai |
- The cooperative bank will now only permit withdrawal of Rs.10,000 from the account for next 6 months
- RBI was forced to announce this freeze on the bank after it was found that HDIL accounted for 31% of all its loans
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| Saudi Aramco restores production 5 days ahead of schedule |
- Aramco had cut its output from 11.2 million bpd to 6.1 million bpd after the drone attacks by the Houthi rebels
- With full output restored earlier than scheduled, Aramco supply managed to bring crude prices down by $11/bbl
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| Trump plans to delist all Chinese companies from the US |
- This decision was taken even as the US also decided to limit the US investments in China
- This was seen as a measure to browbeat China after the Chinese delegation had walked out of trade talks last week
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| Modi calls on world community to join hands to fight terrorism |
- Taking a dig at countries like Pakistan, Modi underlined that the lack of unanimity was delaying the fight against terror
- Talking about Kashmir at the UN General Assembly, Modi assured that human rights had been upheld in India
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| Tata Motors to shut JLR plants in the UK for a full week |
- This plant shutdown is intended to help the demand and supply get back in sync with each other
- Carmakers globally have been struggling with weak Chinese demand and the price of Tata Motors cracked in response
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| CBDT extends deadline for tax filing and audit by one month |
- In line with demands, the government agreed to extend the deadline for audited filing of returns till October 31st
- These typically apply to Form 6 submissions for business profits wherein the software update was as late as September
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| Acropetal Technologies gets pulled up by SEBI for diversion of IPO funds |
- The MD of Acropetal has been barred from accessing the capital markets for the next 10 years for funds diversion
- In addition, six senior officials of the company have also been barred from the capital markets for up to 3 years
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| Reliance Capital completes the sale of RNAM stake to Nippon Life |
- Post the stake sale, Nippon Life now holds 75% stake in RNAM and the name change is likely to reflect the new ownership
- Nippon Life has already invested close to Rs.7600 crore into RNAM and underlines its long term interest in India
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| Altico seeks more time to repay a sum of $610 million to creditors |
- After the default by Altico in the previous week, many more lenders to the company had called back their loans
- Altico, backed by Clearwater, has sought more time to repay in the light of the liquidity crunch in its business
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| Yes Bank touches a 52-week low during the last week of September |
- The stock has fallen nearly 80% from its peak price and shows no signs of settling down after the new CEO took over
- The bank has heavily written off its bad assets but still has a 38% exposure to corporate stress cases
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| Nirmala Sitharaman dismisses concerns over liquidity in the banking system |
- This statement was made by the finance minister after her elaborate meeting with private banks in India
- The FM also underlined that funding would be made available to NBFCs which do not have solvency issues
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| Ashok Tyagi cautions mutual funds against standstill arrangements |
- The SEBI chief has underlined that standstill agreements do not have any provision in the SEBI MF regulations
- Under the new regulations, MFs are required to treat any such standstill agreements as a default and provide for the same
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| No fiscal slippage likely assures the finance minister |
- Talking about the Rs.145,000 crore payout, the FM clarified that talks of fiscal deficit going up to 3.97% were unfounded
- Government has other choices like cutting expenditure or looking for other sources of revenues to bridge this gap
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| Sugar exports continue to struggle despite export subsidies offered |
- Indian government has been trying to compensate sugar mills by giving them export subsidies due to higher cost
- However, despite the subsidies, Indian exports are unable to compete due to lower international prices
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| SEBI proposes tighter bond disclosure requirements to rating agencies |
- SEBI has mandated that any material default related data must be shared with rating agencies immediately
- In the past, RBI has been wary of sharing such data due to client confidentiality issues, but that may have to change
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| Indian funds find it hard to beat the index consistently; Morningstar |
- The difficulty of outperformance has become a lot more acute in the last years according to Morningstar
- Experts believe that this trend could lead to the rise of passive funds in the Indian context
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| Coal India worker’s strike hits coal output significantly |
- Coal output for the month of September was down by nearly 56% as workers protested 100% FDI in private coal mining
- This strike is badly hitting the Indian thermal power sector and threatens to make its huge debt stressed
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| SEBI notifies two new regulations for foreign portfolio investors |
- The first shift pertains to the KYC requirements for FPIs, which has been substantially simplified
- Secondly, FPIs have also been permitted to seamlessly transfer shares by off-market transfers via demat
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| Mutual funds sitting heavily on cash to the tune of more than 10% of AUM |
- That would imply that most of the equity funds would have missed out on the rally in the Nifty in last 1 week
- Despite the sharp rally, the extreme volatility has kept the mutual funds in the zone of uncertainty
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| UK Supreme Court strikes down suspension of parliament |
- The decision of the Boris Johnson to prorogue parliament ahead of BREXIT is no longer valid
- This also signifies that the entire BREXIT process may have to go through debate and may need another extension
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